Worldwide Semiconductor Equipment Sales to Grow 53 Percent in 2010

Worldwide Semiconductor Equipment Sales to Grow 53 Percent in 2010

SEMI Announces Year-end Forecast for Chip Equipment Industry

TOKYO, Japan – December 1, 2009 – SEMI projects worldwide sales of new semiconductor equipment to total US$16.0 billion according to the year-end edition of the SEMI Capital Equipment Forecast, released here today by SEMI at the annual SEMICON Japan exposition. The figure represents the largest annual decline in equipment sales since the global industry association began its data collection program in 1991.

The forecast indicates that, following a 31 percent decline in 2008, the equipment sector will post another significant decline of approximately 46 percent in 2009. SEMI expects the market to grow approximately 53 percent in 2010 to US$24.5 billion and to further increase about 28 percent in 2011 to US$31.2 billion.

"Worldwide semiconductor manufacturing equipment sales have declined to the lowest annual levels since 1994 as the global economic crisis and industry downturn caused the world’s chip makers to significantly curtail spending and expansion,” said Stanley T. Myers, president and CEO of SEMI. “There has been recent improvement in equipment bookings and we anticipate a significant growth off the bottom with expectations of double-digit growth in the next two years.”

Wafer processing equipment, the largest product segment by dollar value, is expected to decline by about 46 percent in 2009 to about $12.0 billion. The wafer processing equipment market will rebound 54 percent in 2010 and 28 percent in 2011 to reach $23.6 billion. The market for assembly and packaging equipment will decline by 33 percent to $1.4 billion in 2009 and will growth in the successive two years to reach $2.4 billion in 2011. The market for equipment to test semiconductors is expected to decline in 2009 by about 55 percent to $1.6 billion in 2009 and will also grow in the successive two years to reach $3.3 billion in 2011.

Significant contraction in 2009 was experienced in all market regions worldwide. Improved spending by NAND flash makers, foundries and packaging subcontractors are expected to be key growth drivers in 2010.

The following figures represent market size in billions of U.S. dollars and percentage growth over the prior year:

Forecast by Equipment Segment

2008 Actual

2009

2010

2011

Equipment Type

$B

$B

%

$B

%

$B

%

Wafer Processing

22.03

11.95

-45.8

18.37

53.7

23.55

28.2

Assembly & Packaging

2.04

1.36

-33.3

1.95

43.0

2.38

22.2

Test

3.45

1.57

-54.5

2.54

61.5

3.27

28.8

Other

2.00

1.14

-42.9

1.63

43.2

2.02

23.6

Total Equipment*

29.52

16.03

-45.7

24.49

52.8

31.22

27.5

Forecast by Region

2008 Actual

2009 Estimated

2010 Forecast

2011 Forecast

Market Region

$B

$B

%

$B

%

$B

%

China

1.88

1.05

-44.2%

1.87

78.3%

2.56

36.5%

Europe

2.45

1.01

-58.9%

1.87

85.2%

2.15

15.1%

Japan

7.04

2.25

-68.1%

3.64

61.9%

4.50

23.6%

N. America

5.63

3.33

-40.8%

4.41

32.5%

5.39

22.2%

South Korea

4.89

2.95

-39.8%

4.47

51.6%

5.90

32.1%

Taiwan

5.01

4.04

-19.4%

5.92

46.5%

7.76

31.1%

Rest of World

2.61

1.40

-46.3%

2.31

64.8%

2.96

28.1%

Total Equipment*

29.52

16.03

-45.7%

24.49

52.8%

31.22

27.5%

*Totals and percentages may differ due to rounding of numbers

SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Bangalore, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.